there of our time here in the house that we all sort of expect to deal with that their way of that was just a sense you heard that right the white picket fence fannie mae and freddie mac. used to provide the american dream is quickly turning into the american nightmare so what is the cause the system to fail. from the midwest to the mid east and even up through greece the world a billion seems to be spreading but will politics ever close the gap. and the fog of war has settled over the on going on rest in libya have reporters

for exciting pictures played up the on rest in the name of a hot story. good evening it's monday march seventh eight pm here in washington d.c. i'm lucy catherine up and you're watching our t.v. and when it comes to the american dream visions of the white picket fences are front and center but for decades those fences have been propped up by the government largely through fannie mae and freddie mac. and since taking over these i'm just rises in the wake of the housing crisis the federal government is now grappling ninety percent of us mortgages but with new proposals from the obama administration the message by obama seems to be clear and that is that this country could no longer afford to prop up the middle class parties lauren lyster explains more. the american dream. to be everybody home and provide for your family so we thought about the way picket

fence it's that traditional vision of homeownership central to living the dream so many people these days we live in the faberge which is turned into a nightmare for millions of americans who've lost their homes to foreclosure or are facing it now people like retired corrections officers contract she didn't want to show her face because of this it's a horrible thought to be facing foreclosure you have a family you have children and you try to keep things stabilize for them but she feels helpless in the fight against losing their home if that you wish and she's in because of a dispute with the banks over the terms of her adjustable rate mortgage i do feel like this i right the should be my right to remain in my home i've been here for nearly twenty years but now americans like sandra may have to kiss the national eat those that says owning a home is a birthright but by all together in the future people may still aspire to get the

picket fence but there you have a hard time getting that house that we all sort of expect that with their might it was just a sense that's because for decades it's going to government sponsored firms propping up homeownership in the country by keeping money flowing to mortgage lenders fannie mae and freddie mac. you may recall them from the financial crisis when their losses led the u.s. government to bail them out to the tune of one hundred fifty billion dollars here in the working class neighborhood of jamaica just outside new york city you can really see what some of those losses from the housing crisis look like this to family home for example before the crisis sold for just over six hundred fifty thousand dollars now not too long ago at a foreclosure auction one hundred seventy five thousand dollars of that debt was optioned for just two thousand dollars and with the government in control of fannie and freddie. american taxpayers scam behind six trillion dollars in mortgage debt now the government says it has to get out we need to wind down fannie and freddie

and substantially reduce the government's footprint in the housing market it's a departure from past government policies which have treated homeownership as a virtual right and report to congress now the obama administration says the goal is affordable housing not for all americans to be homeowners analysts say alternately with all policies and fannie and freddie going by the wayside so too will the white picket fence the dream they helped manufacture it and interest rates are going to have to go up because the risk of lending to home water goes up and fewer parties a lot to get out of it so you know there's you know homeownership orders and it's not just the u.s. middle class that's going to feel it foreign countries all over the world hold billions upon billions of u.s. home mortgages in their portfolios doing away with fannie and freddie could amount to massive losses for these investors and for us clout especially when you consider

economists say shoring up foreign investment was a major reason for fannie and freddie bailout in the first place but america appears unable to afford another option in the face of such massive failure i believe the banks were making. i think it's just their need for to get out of control it's a ridiculous amounts of rest which they didn't properly disclose to the federal government to the regulators or to their investors who were significantly slammed by their misadventure and misadventure coming at the cost of the american dream albion apartments and i would want to be able to buy another one somewhere else that so many americans and the world might enjoy lauren lyster r.t. new york. now earlier this evening i spoke with r.t.e. financial correspondent lauren lester and i asked her if the american dream has really become an american nightmare of course lauren told me that it all depends on what exactly you believe is part of that american dream. if you consider home

ownership a large part of that and if indeed fannie and freddie are done away with then there's a strong case to be made that yes it will be gone now i do want to say that it's not obviously been determined what will happen with fannie and freddie there are different options and people that i interviewed for this story did say that some are just cosmetic and the government would still be involved in subsidizing housing but there is a large argument in a large proposal being made to wind freddie and fannie down altogether and in that scenario it could be a lot more difficult for people to get loans is going to be a lot more difficult to for people to own a home i mean as it is over the last thirty years wages have been stagnant and american savings we know has been extremely low now those are the things that really lend themselves to people actually being able to afford a home what we saw in the housing bubble what we saw that led up to that crisis was a lessening of standards where you know what the government propping up and subsidizing home loans and a loosening of standards many people got them that didn't have the wages to qualify nor do they have the savings so without that subsidy without that being propped up

we're going to see a vastly changing landscape in terms of homeownership in this country i mean it doesn't sound like a pretty picture at all but lauren if we look at this in the historical context i mean fannie and freddie came out of the great depression they were specifically created to give all americans or most americans a chance of homeownership and they've been able to do this successfully for about seventy years through thirteen different presidency is so how is it that one day we just wake up and suddenly boom spectacular failure how in the world to allow this to happen. well we didn't just wake up and boom i mean one of the things that lends to a bubble is a suspension of disbelief that everybody thought that housing prices were going to keep going on and keep going up forever obviously that wasn't the case in the housing crisis that occurred through that was wrong and in the midst of all of that there was a lowering of standards for loans there was a lot of what people attribute to greed there was a lot of instances of fraud there was standing in freddie backing housing programs that allowed people to get loans and to get home. that they really couldn't afford

tons of leverage put on top of that securities made sold all over the world i mean all of this was going on to create a crisis that almost brought this country down and that affected the entire world i mean there are a lot of different factors are created a perfect storm here but i mean it really has changed the idea that homeownership that homes are now said that this is an asset that's always going to continue to rise i mean i was just speaking to the business insiders joe license always saying really if you look long term at homeownership there's only been a few different periods where it's truly been a good investment where you've seen increases i mean that is kind of a myth that has really proven itself over time and the consequences of the wind down seem to be pretty steep if indeed this fannie mae freddie one time does happen we're hearing that interest rates will potentially soar the the thirty year fixed rate mortgage alone which everyone that i have every one of my friends seems to have if they own a home may now be a thing of the past and yet you have geithner insisting that somehow we're going to

magically be able to do this in a way that spares the taxpayer i mean it doesn't exactly seem to add up what's your take. well it doesn't but i think when geithner is talking about sparing the taxpayer i think he's talking about sparing them the losses of the six trillion dollars the taxpayers now stand behind and hold mortgages and mortgage securities as essentially owners of fannie mae and freddie mac. i mean the government took conservative ship of these enterprises and the government now owns and that means taxpayers own them so by getting out of fannie and freddie that means that taxpayers won't be on the line for more of these mortgages and that is what i think he means i don't think he means that everybody's going to get home clearly with that obama administration statement doesn't sound like the government believes every american should be entitled to own a home anymore well you may not be on the line for any more of the homeownership but it looks like the american dream is not what it used to be that was our to financial correspondent warren lester now when you look at this clear divide this widening gap between the rich and the poor and does seem like there are. more and

more places in this country right here in the united states where popular uprisings are going on even right here in washington d.c. right now hundreds of nurses are locked out of their hospital they're fighting to hold on to their salaries they're fighting for better working conditions and arkie correspondent christine for his hours there and takes a look at to what extent this anger may translators actual action. it is a rising tide spreading across the globe. as the angry the oppressed are fighting back against the oppressors in egypt a leader was taken down in libya he hangs on but barely in greece as many as thirty thousand protesters came out last month angry at the ongoing austerity measures imposed by the government there in portugal it was the same thing and in this country wisconsin remains at the crux of the fight described by many as the battle between the haves and have nots where the governor wants to take away

collective bargaining rights of public workers well it turns out it's not just people whose job it is to protect and serve america. it's also those whose job it is to care for americans these nurses here work for the largest hospital in washington d.c. it also has a level one trauma unit which means many of the patients they get are in the most serious condition they the company that runs the hospital medstar is operating on the scene not only not wanting to give you nurses raises but also wanting to leave their pets if they meds are also very understaffed the hospital and in the end it's not just the nurses the patients it was the nurses have about six patients expression late at night sixty eight patients that's way too many these patients cannot move do not get out of bed not walk around. and i think there's a huge problem they say. they've been. without

a contract for nine months and are locked out of the hospital as other nurses had to be bussed in to care for the patients here we are that we are something the most frustrating thing is the sharp differences in those who run the hospital from the board room and those who actually run it in the emergency room and patient rooms traditionally c.e.o. pensions and and wages are about three hundred times the average what the average worker makes and it's the average worker that but me in the put into the product on the street that's that's doing the doing the job and it's just amazing that that corporate profits of comment on a worker bill welfare corporate profits versus worker on welfare you could say it comes out most of the major conflict but at what point are words not enough stunning pictures. even angry lawmakers this is an important moment in history this is a moment where we watched stand up and speak out and speaking out they increasingly

are but will those you know whether in wisconsin in egypt or on the streets of d.c. achieve a fundamental change in the system in washington christine frees our our team. now earlier this evening i spoke with journalist and author david de graw about the spread of this content around the globe and i asked him if it's possible that all of these different movements are actually connected at the writ here's his response every one of these protests so you surely are all against the same setting a neo liberal economic policy you know century and plans through the federal reserve through the eye and out you know whether people in egypt and people in wisconsin understand that these are old rule systemic economic policies created by a century player and you're a liberal aristocracy i mean this is the way the global economy works and once people start connecting this not realizing but you know look at egypt for example.

the every belly against goldman sachs j.p. morgan because the i.m.f. took over that country and some thousand were implemented all these economic policies that were allowed to mend their billing because they can't get jobs they can't put food on the table and i think people people are reacting to very specific things that apply to their everyday lives i don't know if you can go and make that connection as a family that's part of the economic policies that are put in place the neo liberal economic policies the increased unemployment the increased increase the price of food you know they make the cessna's hard to get to these are systemic global policies and these people react that can't be it can't afford to eat it can't you know they don't have any jobs these people are fighting for survival essentially and it is all done through economic policy through the i.m.f. and the federal reserve quantitative easing cause the price of fluid to rise around the world it's not wasn't the only cause but it basically threw gasoline all over

the fire and this is why people are trying merrily rubella but the unemployment isn't that it's these are centrally planned economic policies that everyone in the united states and egypt tunisia greece all through your this this is what's happening this is a essential was already a billion against you with real economic policy but a global rebellion would indicate some sort of potential change and unfortunately i think history has shown time over and over and over again that people taking to the streets doesn't necessarily translate to the actual system being reformed i mean i would go on and take a bet right now that in about a month we're not going to talking about the labor movement anymore you know once the pictures are out there and that i don't think are just as they focus on that this is because there's such a high level of suffering now you know it world of declining resources and extreme weather and these these centrally planned economy just trying to live you know weight you know and anyone else's needs it's not sustainable. i mean just look at

the united states i know you people don't have health care if it's a million are living in poverty thirty million or and you work your level of suffering instead exceeding increasing so you know you have to be concessions and be a long battle about that time passes war and more people are going to be fighting for survival so this is not something that's going to end anytime soon but you know you know. these changes with you know from a warrant to somebody else or even if you are who. you know whatever their if i will go out you know those moves are going to supply senate were people can't afford to eat they can't afford to have any decent living standard that was author and journalist stated to her are so as protests continue to spread throughout the middle east is it really shocking that people are taking to the streets as a way to fight for change or a harvest of the resident dot net took to the streets of new york city to find out just that question.

that all of the interactions revolutions and uprising in the middle east catch you off guard this week let's talk about that are you surprised i'm not surprised i am . one of the i'm from allah i was seven weeks ago and by the way. i reported to the board that the political situation in the middle east was very very unstable. one week after the whole thing color in tunisia in egypt you know change was a common we all knew cheese was going to come i mean more market affy we get this guy it was just a matter of time before these dictators were you know things change people want change and people were hurt and people hurt we moved to action and people were avery be moved to action do you think that the world leaders are caught up bad either. i think they're caught off guard and knowing what how to react because they

i believe they know the world is going to be more unstable but they have to support the idea of freedom so it's a mix and it's a blessing so you think that all these are going to lead to more unrest or more instability yes i believe it's more about power and the unfair distribution of power than it is about real democracy well i think it's you know does the time make the leader does the leader make the time though that's always like an ongoing question when it comes to stuff like this and i think we have to wait and see this is going to be a good test for everyone in power right now to see how they come out yet so what do you think the effect is going to be around the world what i think it's really not going to make much difference what i hope is that when different people come into power to tell say you know they'll start treating our people right and everybody in this world we will have the united states want to be a police country anymore all the social networking that's going on they can no

longer hold their people and feed them the propaganda that they used to do you think this is something that could happen here or in europe or in other places definitely that's scary you know you know well you're prepared for it but i think it will definitely happen it's a little scary to know that anyone can have so much influence now i don't want a leader giving me proud again the but it's a little unnerving to know that anyone with a computer can have that kind of. howard. you have to be one enough to know what pollution to and what you ignore whether or not you think anyone has any idea of what's to come next the bottom line is that there's no denying this time of. now when it comes to the unrest in libya it seems the facts are few and far between there are conflicting reports on the number of those killed on airstrikes by

gadhafi forces even the number of cities controlled by the opposition pretty much everything that's been reported on seems to be in doubt and last week a wave of corresponded suggesting that the opposition was in control of the entire country and it was doomed all artes oksana boyko went to the opposition health and ghazi to find out just why and how these exaggerations came to light let's take a look. of war in comprehensible as it sounds it's present in any conflict just days ago these parents pyrrhic with their children's lives today they're taking their pictures in front of the tanks the desire to be captured the last thing in the face of danger is even stronger in the journalists and the conflict in libya is providing a perfect setting for a moment gadhafi is striking back now we're hearing reports of warplanes bombing opposition camps in eastern libya forces loyal to libyan leader moammar gadhafi appeared to be advancing east into areas held by his opponents on t.v.

screens of bin ghazi look like the center of the rebel resistance but in reality it's more like a seaside resort than a conflict zone portal's a fully booked with journalists and residents go about their daily lives here boys are looking for new things to play with toy guns are in ample supply some reports from them ghazi referred to the creation in eastern libya as war not a conflict zone where. as i engage in sporadic and isolated beach battles with pro get out in force this but an all out war now i don't have any theory life is going on it's ok none reso was one of the first reporters to arrive in benghazi for several days she's been travelling with the rebels about two hundred kilometers west of this week at some point the pro-government forces opened fire at her through a focal point of the record there's a war going on and where the real i could or not there is that there is

a frontline you know and there are people with guns and there are two sides fighting she's channels know the gunfire and if there's a snake for strong disease but they also can't help she's looking out for solution and that journalist and leave has to reflect really from tripoli and all the gadhafi controlled parts of libya son can find themselves sucked in by the rebel side of the story their goals are just opening up to journalists they just love them and. just whenever they take one city we go with them and then we go into into the other city that reporters need to travel to here in the opposition's press center and because the internet access isn't restricted and the coffee available twenty four hours the messages of the war and sometimes finds its way into reports of people the prize each person's head so we are really in danger. because we don't trust the driver so we have to be with him or sneak circle so you

as a human being you tell me how could you be i mean objective here is human rights with rebels professing their readiness to fight good after his regime to the bitter end no wonder news reports a caring predictions of imminent civil war yet as the rebels an ability to mount a fully fledged defensive becomes more apparent so is the imbalance nature of the coverage media meet quote get up a delusional. but in their assessment of the lead they don't show a full grasp of the situation either. many people think that being i want to respond to takes a lot of courage and hard work but actually. it's much easier and far more enjoyable than routine journalistic assignments especially when the receiving side is so accommodating the problem here in god he is that some reporters became not only part of the story but in its main driving force and instead of hoping that

confrontation and block showed could very very fit that almost calling for it sounded like an artsy bin gazi. and joining me now for more to talk about the weapons of mass destruction is asia times correspondent pepe escobar thank you so much for being here and now turning to this conflict in libya there seems to be so much growth from both the mainstream media u.s. politicians about getting involved in essentially another conflict there talk a little bit about this ramp up the that's a little bit too reminiscent frankly of two thousand and three with iraq. look i think only for the past half an hour and so i saw history repeating itself s. far sept least six or seven times in on being very generous here so this is a rerun of course of all this could be a rerun of iraq this is a rerun of humanitarian period and very very dangerous there's nothing for the west

to do in libya but it's very complicated because libya is not egypt or tunisia. it's doesn't have this civilizational call in the culture of egypt it's not the heart of the arab world like egypt until a few years ago in fact to be flora kind afy libya was a collection of tribes was very very poor so as much as scott afi is this john galliano dressed freak show he modernized leiby a for a while of course there's not a great distribution of income but if you compare libya we don't either sub-saharan countries this is where black africans guly cross the desert to go to libya because their employment opportunities or abuse me cathy is fighting some saying that you never saw coming here is committing human rights abuses he is killing civilians we all know that but this does not feel the west will dare enshrine and need to

intervene or no fly zone because as robert gates from the pentagon himself said this is the committing war against lead on average and that's a matter of happened we've said ali by dozens and countless conflicts and the african continent took place and i don't think a lot of other center fiasco was different this time as an ally or europe's a little iraq you'll see it like gaz example and of course the iraqi example don't forget benegal chilled hundreds of thousands of civilians that are reckless in the iraqi and iraq war not to mention all the as the wedding parties and after. reasons so yes it is the oil but again as i went on when you look at the wealth of choice than iraq we obviously didn't really work that one out til well so what in the world would make people think that some sort of invasion where the help we have going on across a trace and whatsoever i mean it backfired clearly for the neo cons in iraq you're totally right but there are so many. causes there are so many variables i

think the big overarching core of all here is the crisis of global capitalism so you need more markets you need sources of energy even could be more markets libya means foreign multinationals the best senior libyan oil and gas industry we don't know what kind of opposition might emerge if they can actually reach these appears because in this history liberated. you flying. you know absolutely everybody from a progressive lawyer secular people to islamists that they are keeping a low profile so nobody knows what will a new. government will be so in the minds of people deciding stuff in washington and in brussels and longer ari paris ok if we go there and we prop up the next government would be in charge of the north and africa will be close to

egypt and closer to legion algeria will be controlling the region and nato will be placed in a threat like ability to reign is a nato lake for that matter but majors not only so emotionally to lose their natal believe it as well so this means the west called trolls north africa so that's that's the real game that you won't see is called out in mainstream media for why it is it's really sad to see what kind of a short term memory with him to collectively have when it comes to these kinds of conflicts pepe escobar asia times correspondent thank you as always for being with us. now it seems that the united states may be carrying out its own kind of p.r. stunt this time trying to repair its image of ghana stan u.s. secretary of defense robert gates is in that country on a surprise visit arriving shortly after president karzai rejected an apology from the u.s. now just hours before robert gates landed in afghanistan general david petraeus said that he was sorry for the civilian attack in that country that killed nine

young afghan children just a few days ago but karzai is that the apology was quote not enough so cue the u.s. secretary of defense who again apologized on behalf of the u.s. in a move that seems to have done the trick karzai and gates have since talked about everything from civilian casualties down to the drawdown of u.s. troops in afghanistan. but that does it for now for more on the stories that we cover today go to our t. dot com slash u.s.a. and of course check out our you tube page it's youtube dot com slash r t america and as always feel free to follow me on twitter as well that's the sea captain of a great night we'll see you tomorrow.